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LOS b: Define a justified price multiple.
Q1. The multiple indicated by applying the discounted cash flow (DCF) model to a firm’s fundamentals is necessarily the:
A) justified price multiple.
B) same as the average industry multiple.
C) result of calculating retention/(required rate of return - growth) for the overall market.
Q2. The warranted or intrinsic price multiple is called the:
A) justified price multiple.
B) multiple implied by the market price.
C) multiple implied by historical growth.
Q3. A justified price multiple is the:
A) warranted or intrinsic price multiple.
B) multiple implied by historical growth.
C) multiple implied by the market price.
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发表于 2009-3-9 16:24
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